How much did Banks borrow from FED in 2008?

August 22, 2011 1 Comment »

A report was just issued today on the whopping sum in which banks borrowed from the FED during the financial meltdown of 2008 along with ‘who’ exactly borrowed ‘what’ amount.

Prior to the Dodd-Frank regulatory reform law, the FED refused to disclose the sum it divvied out to our country’s most well known banks, however, this information has now gone public. And the sums are quite staggering! Check out the figures and facts below.

Bank Borrowing from FED:

1) Morgan Stanley — $107.3 billion
2) Citigroup — $99.5 billion
3) Bank of America — $91.4 billion
4) UBS — $77.2 billion
5) Goldman Sachs —$69 billion
6) Deutsche Bank — $66 billion
7) Barclays — $64.9 billion
8 ) JP Morgan Chase — $48 billion
9) Hypo Real Estate Holding — $28.7 billion
10) Societe Generale — $17.4 billion

Apparently there was significant borrowing from foreign banking institutions as well. The Royal Bank of Scotland, based out of Edinburgh, received $84.5 billion while Zurich’s UBS got $77.2 billion. Another noteworthy borrower abroad was Germany’s Hypo Real Estate Holding which received $28.7 billion – a whopping $21 million for each of its 1,366 employees!

More mind boggling facts regarding these loans:

- This balance was more than 25 times the Fed’s pre-crisis lending peak of $46 billion on Sept. 12, 2001.

- If loaned out in $1 bills, the $1.2 trillion would fill 539 Olympic-size swimming pools.

- Federal Reserve Bank of New York staffers in February said the central bank netted $13 billion in interest and fee income from the programs from August 2007 through December 2009.

- Bank of America’s bond-insurance prices last week surged to a rate of $342,040 a year for coverage on $10 million of debt, above where Lehman Brothers Holdings Inc. (LEHMQ)’s bond insurance was priced at the start of the week before the firm collapsed.

You can read more here and here.

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  • Brock Hangrove

    All the TARP money has been completely repaid and profits have even been derived from the loan which went back into the pockets of the government, so despite what certain politicians may say, the TARP funding was a success.